Details zur Publikation

Kategorie Textpublikation
Referenztyp Zeitschriften
DOI 10.1007/s10657-012-9376-6
Volltext Shareable Link
Titel (primär) Insurance models and European climate change policies: an assessment
Autor Porrini, D.; Schwarze, R.
Quelle European Journal of Law and Economics
Erscheinungsjahr 2014
Department OEKON
Band/Volume 38
Heft 1
Seite von 7
Seite bis 28
Sprache englisch
Keywords Climate change; Insurance; Environmental policy choice
UFZ Querschnittsthemen RU6;
Abstract The paper outlines the role of insurance as an economic policy tool that can be used to address the issue of climate change. The magnitude of potential loss, the adverse social and economic consequences for millions of people and considerable fiscal strain imposed on government budgets by extreme weather events all indicate that governments can benefit significantly from the use of an insurance instrument capable not only of covering damage but also of providing an incentive for risk reduction behaviours. By examining the diverse insurance systems that exist in European countries and grouping them into five stylised models, natural hazards insurance is examined in terms of private and public involvement. The paper analyses the performance of different insurance models in relation to information imperfections (i.e. adverse selection and moral hazard) and market imperfections (i.e. charity hazard and transaction costs). In addition, the different models are examined in terms of the extent to which they incentivise mechanisms that facilitate the mitigation of greenhouse gas emissions, adaptation to the inevitable impacts of climate change and the development of climate risk finance management. Some concluding remarks are offered regarding the possible future development of a European insurance model as a means of developing an economically effective response to natural hazards caused by climate change.

dauerhafte UFZ-Verlinkung
Porrini, D., Schwarze, R. (2014):
Insurance models and European climate change policies: an assessment
Eur. J. Law Econ. 38 (1), 7 - 28 10.1007/s10657-012-9376-6